Divorce is one of the most challenging events in a person’s life. A divorce can be a business owner’s worst nightmare. Entrepreneurs put a lot of time and money into their businesses and to have them split up in a divorce can be worrisome.
Indeed, business owners often worry about how their businesses will survive a divorce. A contested divorce that involves litigation can negatively affect a business owner, taking time and energy away from their business for a long time — possibly a year or longer.
That’s why business owners should aim to keep their business details out of the courtroom, if possible. Instead, they should opt for mediation. Mediation allows the parties to settle divorce issues on their own with help from a mediator, a trained third party who can answer questions and help the parties reach an equitable settlement.
Mediation has a lot of benefits for those who are divorcing. If you have a business or other assets, working things out on your own is a lot better than battling it out in court.
Benefits of Mediation
Mediation can benefit you in many ways. For example, it can do the following:
- Save you time and money. If you can avoid going to court and can settle your differences in mediation, you’ll save a lot of time and money. Litigation can cost tens of thousands of dollars and take longer than a year to resolve your issues.
- Keep everything fair. The mediator will help you and your spouse come up with solutions to keep everything fair. You won’t be subject to a court ruling, which can often be one-sided.
- Give you control. The judge doesn’t know your situation and will often rule based on the law. They don’t know the history of your business. They don’t truly know how you and your spouse contributed to the business. With mediation, you and your spouse have control. You can work together to find a solution that is fair and fits the needs of both of you.
- Keep everything confidential. When your case goes to court, it becomes public knowledge. Anyone can look up your case and get the lowdown, and this can be embarrassing if you are a business owner. It can ruin your reputation and bring about negativity. Meditation, on the other hand, is confidential and private. The mediator will toss any notes regarding your case and nothing will be disclosed to anyone.
How Mediation Can Help Your Business
Mediation can help your business in many ways, such as the following:
- Minimize the impact on the day-to-day business operations. Divorce can be time-consuming, especially if litigation is involved. Business owners cannot always take time off work to deal with these legal matters. It’s best if they can resolve their issues as quickly as possible so that their business operations are not interrupted.
- Divide the business interests. You can work with your spouse to determine what they want out of the business and how it should be split.
- Value a business. This often requires an expert. However, mediation enables spouses to choose an expert to assist in the business valuation process. This can aid in the determination of business income in the event of child support.
- Determine the appropriate income for the business owner. You and your spouse are aware of what each other does on a daily basis to aid the business. Take note of the tasks each person takes on and come up with an appropriate income.
- Avoid dissolution of the business. If you really want to keep your business, then it’s possible. Mediation is known for creative, out of the box solutions. If you need to buy out the other spouse, but don’t have the cash, you can offer them other assets of value. You can ask your spouse what they want to do with the business. The mediator may be able to help. Know that there are options, so don’t feel stuck. You don’t have to automatically resort to closing down shop permanently.
Contact Us Today
Dividing a business in a divorce is a challenge, but mediation can make it easier. Try to work things out with your spouse and make things fair so you can avoid the courtroom.
There are a lot of complicated elements involved. Contact the Ohio divorce attorneys at Lawrence Law Office for help splitting up your business in a divorce. To schedule a consultation with our office, fill out the online form or call 614-228-3664.